BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1351
                                                                  Page  1

          Date of Hearing:  June 28, 2010

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                    SB 1351 (Wright) - As Amended:  June 15, 2010

           SENATE VOTE  :  24-0
           
          SUBJECT  :  California Global Warming Solutions Act of 2006 (AB  
          32):  State Air Resources Board (ARB) regulations

           SUMMARY  :  Requires ARB to make specified items required for  
          compliance with AB 32 regulations available to the public when  
          the regulation is adopted or 60 days prior to the compliance  
          date.

           EXISTING LAW  , AB 32, requires ARB to adopt a statewide  
          greenhouse gas (GHG) emissions limit equivalent to 1990 levels  
          by 2020 and adopt regulations to achieve maximum technologically  
          feasible and cost-effective GHG emission reductions.

           THIS BILL  :

          1)Requires ARB, for regulations adopted pursuant to AB 32, to:

             a)   Publish any implementation schedule required to comply  
               with the regulation at the time the regulation is adopted.

             b)   Publish any reporting form, metric, compliance tool, or  
               training required to comply with the regulation at least 60  
               days prior to the date required for compliance.

          2)Exempts regulations adopted before January 1, 2011.

          3)Defines "compliance tool" as the resources specified in a  
            regulation for compliance, including, but not limited to,  
            computer models, databases, algorithms, formulas, datasets,  
            forms, criteria, bulletins, manuals, instructions, orders,  
            spreadsheets, software, Web sites, labels, protocols, and  
            other guidance documents required for compliance.  

          4)Defines "metric" as units and standards of measurement by  
            which efficiency, performance, progress, or quality of a plan,  
            process, or product can be assessed.









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           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs  
          (prior version).

           COMMENTS  :

           1)Background.   The AB 32 Scoping Plan is a description of the  
            specific measures ARB and others must take to meet the  
            objective of AB 32:  Reduce statewide GHG emissions to 1990  
            levels by 2020.  The reduction measures identified in the  
            Scoping Plan must be proposed, reviewed, and adopted as  
            individual regulations by January 1, 2011, to become operative  
            by January 1, 2012.
            According to the author, to meet deadlines, ARB regulations  
            have been adopted without the guidelines, implementation  
            schedules, procedures, and other relevant compliance  
            mechanisms that should accompany the regulations in order for  
            regulated entities to comply or prepare for compliance with  
            the new regulations.  Without a clear compliance path  
            regulated entities are forced to guess and make decisions  
            without proper guidance which exposes these entities to  
            potentially costly noncompliance enforcement actions and  
            penalties.

           2)Suggested amendments.   This bill would require ARB to publish  
            any implementation schedule required to comply with a  
            regulation at the time the regulation is adopted and publish  
            any reporting form, metric, compliance tool, or training  
            required to comply with the regulation at least 60 days prior  
            to the date required for compliance.  While the bill's intent  
            is reasonable, its broad requirements and definitions may lead  
            to claims that ARB should have published something that a  
            regulated entity contends is needed for compliance, such as  
            software or training, that ARB could not reasonably be  
            expected to provide.  In addition, the bill's requirement that  
            all compliance tools and other items be provided in advance of  
            a regulation's implementation or compliance dates may  
            frustrate ARB's ability to respond to compliance problems by  
            providing new or revised compliance tools.

            To address these issues, the author and the committee may wish  
            to consider amending the bill to (1) limit the compliance  
            tools and other items that ARB must provide to those items  
            that are specifically required in its regulations and (2)  
            permit ARB to revise compliance tools after the regulation is  








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            adopted.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Council for Environmental and Economic Balance  
          (sponsor)
          American Council of Engineering Companies of California
          Associated Builders and Contractors of California
          California Building Industry Association
          California Business Properties Association
          California Cattlemen's Association
          California Cement Manufacturers Environmental Coalition
          California Chamber of Commerce
          California Chapter of the American Fence Association
          California Construction and Industrial Material Association
          California Council for Environmental and Economic Balance
          California Farm Bureau Federation
          California Fence Contractors' Association
          California Forestry Association
          California Grocers Association
          California Hospital Association
          California Hotel & Lodging Association
          California Independent Oil Marketers Association
          California League of Food Processors
          California Manufacturers and Technology Association
          California Nevada Cement Association
          California Precast Concrete Association
          California Restaurant Association
          California Retailers Association
          California Small Business Association
          California State Council of Laborers
          California Taxpayers Association
          Chemical Industry Council of California
          Consumer Specialty Products Association
          Engineering and Utility Contractors Association
          Engineering Contractors' Association
          Flasher/Barricade Association
          Independent Waste Oil Collectors
          Industrial Environmental Association
          Marin Builders' Association
          National Federation of Independent Business
          Pacific Merchant Shipping Association
          State of California Auto Dismantlers Association








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          Western Growers
          Western States Petroleum Association
           
            Opposition 
           
          None on file

           
          Analysis Prepared by  :  Lawrence Lingbloom / NAT. RES. / (916)  
          319-2092